Brexit Negotiations to be Triggered

19 June, 2017

The Brexit negotiations between the UK and the EU is set to start today, June 19th.

Although Theresa May has stated before “no deal is better than a bad deal”, Chancellor said on Sunday that “no deal would be a very, very bad outcome for Britain”. A Hung Parliament will likely cause both a positive and a negative impact on the Brexit process, as the Tories now have less dominance in the Parliament, the UK will likely be at a weaker position, resulting in a softer Brexit. However, different opinions and stances between different political parties will likely cause conflicts on some Brexit associated issues.

The focuses on the Brexit issues include whether the UK will be able to stay in the custom union, trade agreements, financial services, the rights of EU citizens living in the UK and British nationals living in the EU etc. In the short term, the GBP prospects will likely subject to the progression and situation of the Brexit process.

GBP has seen a rebound post the general election. GBP/USD has rebounded around 1.15% since June 12th. This morning, in early European session, the bulls are attempting to breach the psychological level at 1.2800. GBP/JPY has rebounded 2.3% since June 12th. This morning, in early European session, the bulls broke the resistance level at 142.00. EUR/GBP has retraced 1.3% since June 12th.

After the release of the UK general election outcome, markets’ risk-off sentiment has waned. The VIX (volatility) index fell to a low of 9.37, last seen in 1993, after the election. It was followed by a moderate rebound, trading around 10.38. It appears to be that markets’ risk-on sentiment will likely last an extended period.

Gold has retreated around 1.27% since the Fed addressed a hawkish statement last Wednesday. This morning in early European session, spot gold fell to a low of 1250.06, last seen on May 24th.. There is stronger support at the zone between 1245 – 1250, if the zone is broken, we will likely see an extended downtrend. In the short term, gold prices likely remain bearish unless some unexpected market events happen to push it up.

The economic data is relatively thin this week. The Reserve Bank of Australia (RBA) meeting minutes will be released at 02:30 BST on Tuesday morning, it will likely affect AUD crosses.


Source link  
Dollar updates its 14-month highs

The strengthening of financial markets on Tuesday has not been unsustainable and prolonged. Recent shots in the U.S. trade conflicts are: a Chinas claim...

Dollar has a potential of 5% rally

The dollar rewrote 13-months highs on Friday to a basket of six major currencies, adding 0.25% after gaining 0.5% on Thursday. The further growth of...

BoJ cautions keep forex calm

In the currency market, the dollar was under some pressure following the data that indicated a weakening of the inflation in the Eurozone. The slowdown in prices...


Stocks are growing, Bonds under pressure

The situation in the world markets looks controversial. Shares are growing after strong reporting of companies. The shares of Alphabet (#Google) jumped by 3.6% after...

The potential of USD growth is limited

Powell's speech with the semiannual report in the U.S. Congress contained an optimistic view on the economic outlook. Such a tone has reduced fears that...

Oil drops back into June price range

The WTI Oil price fell from $72.98 to $68.68 yesterday despite the inventories data showing a draw of -12.6M barrels which is the biggest since September 2016...


Dollar is weaker today after rejection 95.50

The USD has weakened against the majors after the DXY rejected the 95.50 level in yesterday's trading creating a technical double top and is now trading down...

Stronger IT, softer financials

Stock markets continue to strengthen with increased demand for high-tech companies. The NASDAQ100 closed a second day in a row...

USD weakens through the day yesterday

The USD weakened further overnight after the move began in the US trading session yesterday. USDJPY moved down under the 110.000 level after...


In the past 24 hours Bitcoin has gained 1.32% and reached $6380.21023548. Open your trading account with the best cryptocurrency brokers on special terms today.

In the past 7 days the EUR/USD pair has lost -1.3466% and is now at $1.138. Start trading and making money on Forex today.

In the past 7 days Ethereum has lost -19.35% and is now at $294.257590093. Have the most popular cryptocurrencies compared online 24/7.


Top Brokers offering Forex Market Analysis



Forex Currencies Forecasts



Top 10 Forex Brokers 2018

# Broker Review
1easyMarketseasyMarkets89%
2FXTMFXTM87%
3HYCMHYCM85%
4FxProFxPro80%
5FIBO GroupFIBO Group78%
6FXCMFXCM73%
7AvaTradeAvaTrade68%
8HotForexHotForex67%
9Alfa-ForexAlfa-Forex66%
10XMXM66%
  


Share: